Crop Diversification in Eastern India: Status and Determinants

Abstract

Diversification of agriculture in favour of more competitive and high-value enterprises is considered as an important strategy to augment farm income, generate employment, alleviate poverty and conserve precious soil and water resources (von Braun, 1995; Pingali and Rosegrant, 1995; Chand, 1996; Ryan and Spencer, 2001; Joshi et al., 2003). High-value crops have enormous demand potential in India as is reflected by the rapid increase in the consumption of high-value food commodities (Kumar et al., 2003). Further, international trade too offers considerable opportunities in high-value agriculture. The process of globalisation has triggered a fast growth in exports of fruits and vegetables from developing to developed countries (DiazBonilla and Recca, 2000). For meeting the growing domestic demand and reaping the benefits of globalisation, Indian agriculture is gradually diversifying towards highvalue crops (Joshi et al., 2003). Between 1980-81 and 2007-08, the share of nonfoodgrain crops increased from 26 to 36 per cent in the total cropped area, and from 46 to 61 per cent in the value of crop sector output (Central Statistical Organisation, Government of India). This transformation though visible throughout the country shows considerable regional variations due to differences in the levels of adoption of agricultural technology, infrastructural development, markets, dietary patterns, etc. The contribution of diversification to agricultural growth in India has been quite substantial, 30 per cent during the 1990s (Joshi et al., 2007). In the recent past, diversification in agriculture has occurred largely through crop substitution. Concerns have been expressed whether this process would sustain in the long-run, given the facts that land frontiers are closing with little scope to bring additional land under cultivation, and the landholdings are getting smaller and smaller under population pressure (Jha, 2001; Rai et al., 2010). The eastern region of